Town of New Paltz files lawsuit over Park Point tax breaks

Wednesday

Aug 6, 2014 at 10:08 AMAug 6, 2014 at 4:48 PM

NEW PALTZ -- The town board has authorized its attorneys to sue the Ulster County Industrial Development for its creation of a category that allowed the the Wilmorite development corporation to apply for a payment in lieu of taxes for its Park Point project.

The town board and town planning board have rejected Wilmorite's PILOT, saying that the corporation should pay its full share of property taxes.

The IDA, however, has rejected the town's arguments and accepted the corporation's PILOT. Wilmorite says the payment is critical to its plans for a $60 million housing complex for SUNY New Paltz. But since the payment can't be made without the town's approval, Wilmorite and the SUNY New Paltz Foundation have sued the town.

The board took its action Thursday at a special meeting because Monday was the deadline for it to take any legal action, according to supervisor Susan Zimet.

Zimet said that the town's suit, known as an Article 78 procedure, will focus on the fact that a special category known as Category 5 was created by the IDA specifically to benefit Wilmorite's bid to build additional student and faculty housing.

Jeremiah Horrigan

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